In a dramatic escalation of Hollywood’s ongoing consolidation wars, Warner Bros. Discovery (WBD) has once again turned down a hostile takeover offer from Paramount Global, opting instead to pursue its previously announced agreement with streaming giant Netflix.
The rejection, announced on Wednesday, underscores the high-stakes maneuvering among media titans as they grapple with shifting consumer habits and intensifying competition in the entertainment industry.
The Details of the Rejection
WBD’s board unanimously advised shareholders to reject Paramount’s amended bid, describing it as “inadequate” and fraught with excessive risks.
The offer, valued at approximately $108.4 billion, aimed to acquire the entirety of WBD, including its pay TV networks, studios, and streaming assets.
Paramount, backed by Skydance Media and controlled by the Ellison family — led by Oracle co-founder Larry Ellison and his son David — had revised its proposal last month to address prior concerns.
Notably, Larry Ellison provided a personal guarantee worth over $40 billion to bolster the deal’s financing, positioning it as a potential safeguard against uncertainties.
Despite these adjustments, WBD’s leadership remains unconvinced. In a letter to shareholders, the board highlighted the proposal’s complexity, labeling it as potentially “the largest leveraged buyout in history” with high costs and uncertainties.
WBD Chairman Samuel Di Piazza emphasized in an interview that the Netflix deal offers “compelling value, a clear path to closing, and protections for our shareholders.”
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Background on the Competing Deals
The saga began in December 2025 when WBD shocked the industry by announcing an $83 billion deal to sell its TV and movie studios, along with its streaming business, to Netflix.
This move was seen as a strategic pivot to streamline operations amid declining traditional cable revenues and the rise of digital platforms.
Paramount, eager to scale up against behemoths like Disney and Amazon, responded with a hostile bid, bypassing WBD’s board and appealing directly to shareholders.
Analysts note that while Paramount’s all-cash offer of $30 per share appears higher on paper, it carries more execution risks compared to Netflix’s structured proposal. WBD has accused Paramount of misleading investors about its financing, calling the bid “illusory.”
Paramount counters that its offer faces fewer regulatory hurdles and provides a more comprehensive path forward for the combined entity.
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Implications for the Media Landscape
This rejection intensifies the battle for control of WBD, a powerhouse behind franchises like Harry Potter, DC Comics, and HBO’s acclaimed series.
A successful Paramount acquisition could create a mega-studio capable of challenging the dominance of streaming leaders, but it also raises antitrust concerns in an already concentrated market. Investors are watching closely.
WBD’s stock has been volatile amid the takeover drama, with some major shareholders, like Harris Oakmark, deeming Paramount’s terms insufficient to cover potential breakup fees with Netflix.
As Ross Benes, an analyst at eMarketer, put it: “WBD does not want to sell to Paramount, so it will keep rejecting as long as it is able to. But this process is not over.”
The Ellison family’s aggressive pursuit reflects broader trends in media, where tech billionaires are increasingly influencing Hollywood’s future.
Whether Paramount will sweeten its offer further or pivot remains to be seen, but for now, WBD is betting on Netflix to secure its next chapter. Stay tuned for updates as this corporate showdown unfolds.